Talisman Pension Transfer due to Emigrating

jenjems

I am emigrating in 7 weeks to Australia and a financial adviser has told me that my Scottish Life Pension may have been missold to me. It is, I understand, a Talisman pension which I took out 13 years ago when I first arrived in the UK (I am an Australian citizen).

Does anyone know anything about the potential misselling of Talisman pensions as I don't know if he is just trying to drum up business for himself...
Is my understanding correct that I should also try and transfer my pension prior to leaving the UK?

Pensions are not really something that I have taken a lot of time trying to understand so I am quite a laymen, if you could keep any responses simple :eek:

dunstonh

Does anyone know anything about the potential misselling of Talisman pensions as I don't know if he is just trying to drum up business for himself...

Talisman was just the marketing name for Scottish Life personal pensions, retirement annuity contracts and section 32 buy out bonds.

There is no reason to suggest any mis-sale from the marketing name (indeed, I have come across some very good Talisman plans over the years).

The type of pension and the options available to you at the time are the key bits of information we need to know. i.e. did you not join an occupational scheme but took out a personal pension instead?

I don't know if he is just trying to drum up business for himself...

If its a tied agent then I would be sceptical because they just dont have the knowledge usually to comment on these things. An IFA should know what questions to ask to advise you if its a mis-sale or not but I doubt either are going to gain any business from you if you are emigrating. So, i see no real motive in it unless the person wasnt an adviser but a claims management rep.

Is my understanding correct that I should also try and transfer my pension prior to leaving the UK?

Better doing it from Oz. You get advice from someone who is at the receiving end and can guide you on what is best there.

Cook_County

I disagree with dunstoh on the final sentance. There are many reputable IFAs here who handle transfers to Australia every week and will know the pitfalls. I would start the process before leaving the UK.

EdInvestor

jenjems wrote: »

a Talisman pension which I took out 13 years ago when I first arrived in the UK (I am an Australian citizen).

On a separate issue, since you have been here for 13 years, you will have already clocked up entitlement to almost half the UK basic state pension when you retire under the new rules which require 30 years NI contributions for the full basic pension.On top of that is the state second pension, if you were not contracted out. You can check how much entitlement you already have by asking these people:

https://www.thepensionservice.gov.uk

Given that the Oz "state pension" is really a means-tested benefit which not many people get, you may wish to continue paying UK voluntary class 2 National Insurance contributions to increase your entitlement over here instead. They cost less than 10 quid a month, which is a real bargain.

The UK state pension is not uprated for inflation in Oz (yet) but will often keep its value due to exchange rate fluctuations.

Worth a look IMHO

dunstonh

Cook_County wrote: »

I disagree with dunstoh on the final sentance. There are many reputable IFAs here who handle transfers to Australia every week and will know the pitfalls. I would start the process before leaving the UK.

They exist but they are not going to be that many and if it was me, I would prefer to get advice at the end where the money is going as they would know the providers/products etc better than someone thousands of miles away. Knowing the rules is one thing. Knowing the best products in another country is another. Certainly possible but not mainstream. I would guess city locations more likely.

jenjems

The type of pension and the options available to you at the time are the key bits of information we need to know. i.e. did you not join an occupational scheme but took out a personal pension instead?


The pension is a personal pension. My recollection was that I took out this pension plan on the assumption that it was a plan for Australians, Kiwis and South Africans working in the UK, with the intention of eventually returning to their home countries.

dunstonh

My recollection was that I took out this pension plan on the assumption that it was a plan for Australians, Kiwis and South Africans working in the UK, with the intention of eventually returning to their home countries.

That isnt grounds for mis-sale as you can do it with this pension (and most pensions).

dwileflunker

EdInvestor wrote: »

The UK state pension is not uprated for inflation in Oz (yet) but will often keep its value due to exchange rate fluctuations.

A slight deviation from OP's question but you imply that the UK state pension might be increased for inflation in the future in Oz. I'd be interested in your opinion as to the chances of this happening and whether it would also apply to New Zealand?

EdInvestor

dwileflunker wrote: »

A slight deviation from OP's question but you imply that the UK state pension might be increased for inflation in the future in Oz. I'd be interested in your opinion as to the chances of this happening and whether it would also apply to New Zealand?

No idea really DF. The system is undoubtedly blatantly unfair and in our increasingly global world, more and more people are becoming aware of it.

The local campaign is very active and there are groups also in canada, SA. No doubt the ruling would apply to all countries if changes.

http://www.britishpensions.org.au/

I believe the next step involves an EU ruling on the Carson case.

Here's a useful link
showing the numbers in frozen and unfrozen countries and the effect that the non-indexing has over the years.